Once You Have Evaluated Your Current Financial Situation and Know

question 193

True/False

Once you have evaluated your current financial situation and know your sources of income and expenses, you have reached the point where you can establish a personal budget.

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Definitions:

Salvage Value

The projected amount an asset is expected to yield when it is sold after its period of usability has ended.

Book Value

The value of an asset according to its balance sheet account balance, which accounts for the cost of the asset minus any depreciation, amortization, or impairment costs.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in equal installments.

Salvage Value

The expected salvage value of an asset at the termination of its useful period.